Friday, September 8, 2023

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Chevron Corporation (CVX), AstraZeneca PLC (AZN) and Netflix, Inc. (NFLX). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Shares of Chevron have gained +8.0% over the past year against the Zacks Oil and Gas - Integrated - International industry’s gain of +17.8%. The company is considered one of the best-placed global integrated oil firms to achieve sustainable production ramp-up.

America’s No. 2 energy firm’s existing project pipeline is among the best in the industry, thanks to its premier position in the lucrative Permian Basin. However, Chevron was not immune to the commodity price crash of 2020, forcing it to cut spending substantially.

The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s 10-year reserve replacement ratio of 100% is indicative of its inability to replace the amount of energy produced.

(You can read the full research report on Chevron here >>>)

AstraZeneca’s shares have gained +14.1% over the past year against the Zacks Large Cap Pharmaceuticals industry’s gain of +25.7%. The company enjoys a diverse product portfolio and a global footprint. AstraZeneca’s key drugs like Lynparza, Tagrisso, Imfinzi, Fasenra and Farxiga should keep driving revenues.

Almost all non-COVID therapy areas of AstraZeneca demonstrated double-digit revenue growth in the first half of 2023. Its pipeline is strong with important phase III data readouts lined up. It has also been engaged in external acquisitions and strategic collaborations to boost its pipeline while investing in geographic areas of high growth like emerging markets.

The Alexion buyout has added drugs like Ultomiris that are boosting its top line. However, AstraZeneca’s diabetes franchise faces stiff competition while pricing pressure hurts sales in the respiratory unit. Sales have slowed down in its key market, China.

(You can read the full research report on AstraZeneca here >>>)

Shares of Netflix have outperformed the Zacks Broadcast Radio and Television industry over the year-to-date period (+50.3% vs. +25.5%). The company is benefiting from growing subscriber base thanks to a robust portfolio. Crackdown on password-sharing and the introduction of paid sharing in more than 100 countries, which represents more than 80% of Netflix’s revenue base, is also expected to aid growth.

Netflix’s diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content, has been driving its growth prospects. It now expects revenue growth to accelerate in the second half of 2023.

Nevertheless, stiff competition in the streaming space from the likes of Apple, Amazon Prime Video, HBO Max, Disney+, Peacock, Paramount+ and TikTok is a headwind. Netflix’s leveraged balance sheet and a higher streaming obligation are concerns.

(You can read the full research report on Netflix here >>>)

Other noteworthy reports we are featuring today include Medtronic plc (MDT), Eni S.p.A. (E) and Marvell Technology, Inc. (MRVL).

Director of Research

Sheraz Mian

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>